Bitcoin price prediction has turned bullish, with BTC surging more than 5% to the $18,000 level following the release of lower-than-expected US CPI figures. Inflation in the United States slowed to 0.1% from 0.4% in October, a positive development for the Federal Reserve’s efforts to rein in the economy’s runaway cost of living.
The report boosted cryptocurrency prices in hopes that the Federal Reserve will slow the pace of interest rate hikes in light of the less-than-scary consumer price increases it revealed.
The US analysts had predicted an annual increase of 7.3% for the CPI, but Tuesday’s report from the Labor Department showed an increase of 7.1%.
Given the weaker-than-expected CPI figures, Bitcoin has risen on speculation that the Fed may reconsider raising interest rates tomorrow.
Retailers are Buying Bitcoin
The number of users holding between 10 and 1000 Bitcoin has recently increased significantly. BTC also experienced significant volatility, owing primarily to recent events. Retail investors continue to buy bitcoin, with three million already in their possession, while whale accumulation is declining.
Santiment, a market intelligence platform, tweeted on December 11 about a significant increase in the number of Bitcoin addresses holding 10 to 1000 BTC.
According to statistics, the number of addresses increased to around 151,000, a level last seen in 2020. The graph also showed a sharp drop after the peak in 2020. In related news, Glassnode Alerts, a blockchain intelligence platform, reported that the total number of BTC addresses holding one or more Bitcoin had surpassed 964,608.
These exposures might be a significant factor in the upward price trend of BTC/USD.
NYC Mayor Upholds Pledge to Bitcoin
Despite a collapse in the price of numerous coins in 2022, New York City Mayor Eric Adams has reportedly maintained a campaign pledge to transform the city into a crypto hub. Adams stated in a December 12 Slate post that he still wants New York City to be the “center of the cryptocurrency industry,” as he promised during his mayoral campaign in November 2021.
According to reports, in January and February, the mayor of New York converted his first of three paychecks while in office into Bitcoin and Ether. Mayor Adams wants to see New York thrive in terms of innovation and economic growth, and he believes that cryptocurrencies, blockchain, and other cutting-edge technology provide tremendous opportunities for both.
During Eric Adams’ tenure, the New York state government approved legislation prohibiting non-renewable proof-of-work mining for two years, and the crypto market began to fall. Furthermore, it appears that the failure of the cryptocurrency exchange FTX has prompted state officials and politicians to intervene.
For instance, New York Attorney General Letitia James proposed that some retirement plans be barred from accepting cryptocurrency investments.
Fed Interest Rate Hike
On December 14, US Federal Reserve Chair Jerome Powell will announce the level of the upcoming interest rate hike. This event will have an impact on traditional finance investors’ fate. Investors are also looking forward to Powell’s press conference.
The market is expecting the Federal Reserve to announce the next interest rate hike soon. Furthermore, if the increase is less than 50 basis points, the market may react negatively.
The BTC/USD price is rising as the market prepares for a Fed interest rate hike. Let us now look at Bitcoin’s technical aspects.
Bitcoin Price
Bitcoin’s current price is $17,866, and the 24-hour trading volume is $25 billion. The BTC price has pumped over 5% since yesterday.
Bitcoin is still trading in an upward channel on the technical front, but it has broken through a double top resistance level of $17,350. Closing candles above this level indicate that the buying trend may continue.
Leading technical indicators such as RSI and MACD have entered a buying zone, suggesting that BTC may trade north. On the upside, the next major resistance level for Bitcoin is at $18,125, and a break above this could expose BTC price to $18,600.
BTC may find support at $17,350 on the downside. It’s the same level that served as a barrier for a while, and it’s now likely to keep BTC bullish. A bearish crossover below this level, on the other hand, could expose BTC to the $16,850 level.
Dash 2 Trade (D2T) – Final Stage of Presale
Dash 2 Trade is an Ethereum-based trading intelligence platform that provides investors with real-time analytics and social trading data to assist them in making better trading decisions. It will go live in early 2023, and its D2T token will be used to pay platform subscription fees on a monthly basis (there are two subscription tiers).
It has also announced early next year listings on Uniswap, BitMart, and LBANK Exchange, implying that early investors will soon be able to lock in some profits.
The Dash 2 Trade presale, which is now in its fourth and final stage, has already raised over $9.6 million.
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